Wednesday, 17 December 2025
Despite a steadily growing number of beauty salons in Poland, many operators are struggling to meet their financial obligations. According to data from the National Debt Register (KRD), the combined debt of hairdressers and beauticians has reached nearly PLN 55 million, an increase of 14% year on year. With higher operating costs and new regulatory requirements weighing on the sector, the upcoming New Year’s Eve period and carnival season are seen as a potential opportunity to improve cash flow.
KRD data shows that more than 3,700 businesses operating in the beauty industry currently have outstanding liabilities, with an average debt of around PLN 14,700 per entity. In total, salons owe PLN 54.8 million to other companies, marking the highest level of indebtedness in several years.
“Compared to last year, the financial arrears of salons have increased by 14%. This has happened despite the growing demand for hairdressing and beauty services,” said Adam Łącki, President of the National Debt Register of the Economic Information Bureau. “The reason may be high labour costs, but also the prices of raw materials and supplies. Spending on skin and hair care products and makeup cosmetics is estimated to have risen by about 10%. Added to this are higher energy and rental costs, as well as wage increases for employees.”
The number of beauty salons and hairdressers continues to grow, with around 132,000 businesses currently operating nationwide. While this ensures a wide choice for customers, it also intensifies competition among entrepreneurs. Sandra Czerwińska, an expert at Rzetelna Firma, points out that the sector’s low entry barriers contribute to this pressure.
“The barrier to entry is low, which encourages entrepreneurs—mainly women—to start their own businesses without a significant initial investment. This creates intense competition,” she said. “For newcomers, the lack of an established reputation makes it harder to attract clients. The industry also faces difficulties in finding qualified staff, as certain treatments require more than short training courses. Lowering standards quickly leads to market exit, and survival rates are low—last year around 5,000 such businesses closed.”
According to the KRD, sole proprietorships account for 83% of all debtors in the beauty sector. Their average debt stands at approximately PLN 14,000, and together these smallest entities are responsible for nearly PLN 44 million in liabilities.
“Micro-businesses dominate the beauty industry, but they are also the most exposed to financial shocks,” Czerwińska said. “They operate on very small margins, often without financial buffers or advisory support. Even minor changes—such as rent increases, higher electricity bills or employee pay rises—can quickly lead to financial difficulties.”
Salons operating in the Mazovia region record the highest level of debt, with more than 700 businesses owing a combined PLN 13.7 million. Pomerania follows, where 383 salons have accumulated over PLN 6 million in liabilities, while Greater Poland ranks third with 354 entities owing PLN 5.8 million.
At the other end of the scale, salons in Podlasie report the lowest total debt, with 63 businesses owing PLN 290,500. In the Opole region, only 47 entities are indebted, though their combined liabilities amount to PLN 533,000. In Świętokrzyskie, 56 businesses owe a total of PLN 864,000.
“Beauty salons in large cities and metropolitan areas tend to have higher debt levels, while those in smaller towns are often in a better position,” said Adam Łącki. “Higher rents, wage expectations and customer demands in large cities increase operating costs, while smaller towns usually offer lower competition and more stable staffing conditions.”
In addition to cost inflation, the sector is facing new regulatory obligations. From 1 January 2025, beauty salons, hairdressers and nail studios are required to register in the Database of Products, Packaging and Waste Management (BDO). The abolition of previous exemptions means that even the smallest businesses generating hazardous waste must now keep records and register, with non-compliance penalties starting at PLN 5,000.
Further changes came into force on 1 September 2025, when the use of TPO—a substance commonly used in nail products—was banned, affecting salons that had already built up inventory.
“It is also worth noting the planned legislative changes extending the powers of the National Labour Inspectorate,” Czerwińska added. “Although the government withdrew from immediate enforceability of decisions, there remains a risk that inspectors could reclassify civil-law or B2B contracts as employment relationships. For many salons relying on these forms of cooperation, this could have serious financial consequences.”
Rising operating and administrative costs, combined with regulatory compliance and potential penalties, are placing additional strain on the sector’s profitability. According to the KRD, a significant share of the industry’s liabilities is owed to financial institutions, including banks, leasing companies, insurers and securitisation funds. As a result, many salon owners are hoping that increased demand during the year-end period will provide some relief to their balance sheets.
